The UK’s antitrust regulator, the Competition and Markets Authority (CMA), has raised serious concerns about Adobe’s proposed $20 billion merger with Figma, stating that it would harm competition in the product design software sector. The regulator’s provisional findings, released on Tuesday, also indicated potential threats to competition in image editing and illustration, reported The Financial Times.
The acquisition, first announced in September 2022, has drawn attention due to its significant valuation of Figma at approximately 50 times its annual recurring revenue, doubling its last private funding round in 2021. Critics of the deal argue that the substantial price tag reflects Adobe’s attempt to eliminate what is perceived as its most promising new rival in decades.
Read more: EU Regulators To Asses Adobe’s $20 Billion Figma Deal
Margot Daly, chair of the independent group conducting the CMA’s investigation, emphasized the competitive landscape between Adobe and Figma, stating, “Adobe and Figma are two of the world-leading providers of software for app and web designers, and our investigation so far has found that they are close competitors. This proposed deal, therefore, has the potential to impact the UK’s digital design industry by reducing choice, innovation, and the development of new competitive products.”
The CMA’s concerns are not isolated, as this month, the European Commission, the EU’s executive body, also expressed objections to the deal after an in-depth investigation. Antitrust regulators in Brussels shared apprehensions that the merger could “significantly reduce competition in the global markets” for the supply of interactive product design tools.
The companies involved have the option to propose concessions to address the regulatory concerns before a final decision is made. The CMA is expected to reach a conclusion by the end of February.
Source: FT
Featured News
Google and South Carolina Clash Over State Records Demand
May 8, 2024 by
CPI
Telefonica Germany Teams Up with Amazon Web Services to Migrate 5G Customers
May 8, 2024 by
CPI
Federal Judge Grants $7.4 Million Settlement in Pork Price-Fixing Case
May 8, 2024 by
CPI
Wilson Sonsini Bolsters Antitrust and Competition Practice with Key Partner Returns
May 8, 2024 by
CPI
EU to Scrutinize Telecom Italia’s Network Sale to KKR
May 8, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI